India to hold $13-15-bn share of RIM by 2013

NEW DELHI, INDIA: The addressable market in Remote Infrastructure Management (RIM) is estimated to become $96-104 billion and the industry could realize $26-28 billion in revenues by 2013, according to Nasscom.

Nasscom’s findings are based on the report The Rising Remote Infrastructure Management Opportunity: Establishing India’s Leadership, released today.

McKinsey & Company conducted the report over the last six months.

The report also says that India is well positioned to capture $13-15 billion of the global opportunity by 2013, with over 30 per cent CAGR.

“Like IT and BPO, we see Remote Infrastructure Management as a large opportunity requiring focused attention and nurturing,” said Som Mittal, president, Nasscom.

“By increasing RIM services the Indian IT industry is moving towards becoming a fully integrated service provider. This report is aimed not only at assessing the opportunity but also identifying the actions to be taken to help realize it,” he added.

The study says that the $524-billion infrastructure management services (IMS) industry could become as important as the Application Development and Maintenance (ADM) and Business Process Offshoring (BPO).

The industry is moving towards a remote delivery model where services are increasingly delivered by vendors and captives from low-cost locations.

“It’s the convergence of three independent forces – the rapid evolution in technologies and IT architectures, changes in customer behaviors and demand patterns, and finally, developments in the vendor and offshore supply environment – that have propelled the industry at a pace faster than earlier conceived, and will continue to accelerate RIM adoption,” said Vivek Pandit, partner, McKinsey & Company.

The report added that 70-75 per cent of infrastructure management roles can be offshored. The potential in the industry can create 325,000 to 375,000 jobs by 2013.